EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: October 18, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Tomohito Oku, Finance Director
Greg Henry, Senior Management Analyst
SUBJECT: Quarterly COVID-19 Emergency Reporting
Recommendation
Receive and file the Quarterly Emergency Report for September 30, 2022.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 1: Enhance Public Safety and Emergency Preparedness Priority No. 5: Improve Communication and Enhance Community Engagement Priority No. 6: Create a Healthy and Safe Community
Background
The widespread, deleterious impacts of the outbreak of novel coronavirus (named “COVID-19” by the World Health Organization) continues to strain communities throughout the Bay Area and the world.
On March 17, 2020, the Council proclaimed a local emergency for COVID-19 and further authorized the City Manager to make repairs, alterations, or improvements to the City’s public facilities, take any directly related and immediate actions required by the emergency, and procure the equipment, services, and supplies for those purposes.
To date, the City has committed significant direct resources to respond to COVID-19. The City also incurred significant indirect staff time and diversion because of the organizational effect of long-term remote work protocol, as well as, responding to COVID quarantine protocols, acquiring additional unplanned responsibilities, and backfilling the responsibilities of the staff directly responding to COVID-19 testing and vaccination activities, as well as supportive activities such as food bank traffic support. As a result, this report does not capture the total direct and indirect costs to the City. Thus, this reporting is not intended to capture the true cost impacts of the pandemic.
COVID-19 Response Activities
For the quarter ended September 30, 2022, the City incurred approximately $53,163 in identified COVID-19 spending. This consisted primarily of community testing and vaccine support, as well an increase in the Vaccine Incentive Card program. Both programs are funded through the City’s General Fund. There were some additional expenses identified as part of the City’s fiscal year end close which are included in this update.
Emergency Reporting Requirement
Under City Municipal Code Section 3.20.030, the Finance Director - as Budget Officer - reports to Council regarding the status of emergency expenditures within fifteen days of each quarter end. This report provides an update to the previous report provided to Council July 19, 2022.
Analysis
COVID-19 Financial Reporting Information
Presented below in Table 1 is the City’s COVID-19 Authorization. As of April 2, 2021, the City Council provided the City Manager $975,000 in Emergency Authorization. In addition, the City Council approved $1.08M in additional COVID related contracts and activity much of which is supported by outside funding (CARES, Bureau of Justice Grants and San Mateo County). The Council has approved $2.06M in COVID response activity.
Table 1
Date Authorization Amount
03/27/20 Emergency Appropriation $ 300,000
03/27/20 Rapid Rehousing Funds 100,000
05/19/20 Community Outreach 26,000
06/16/20 Community Distance Learning 60,000
07/07/20 Emergency Appropriation 75,000
07/07/20 Bureau of Justice Grant 32,660
10/20/20 Emergency Appropriation 200,000
10/20/20 CARES Funding 380,218
01/19/21 Emergency Appropriation 100,000
03/02/21 Emergency Appropriation 300,000
04/20/21 RV Safe Parking Mitigation 96,731
09/20/21 San Mateo County Funding (Curative I) 17,754
09/20/21 San Mateo County Funding (Curative II) 29,151
09/20/21 San Mateo County Funding (Vaccination) 47,293
03/22/22 San Mateo County Funding (Vacc & Testing) 145,000 06/07/22 Vaccination Incentive 55,000
06/07/22 Pandemic Aide Program Budget 95,000
Total $ 2,059,807
Table 2 below shows the source of funding for all current expenditures (not including funds committed to contracts, but unspent). Amounts charges to federal and San Mateo County funding sources reflect only those costs that are directly supported by verifiable or required time keeping and expenditure data submitted by Departments, and such amounts are subject to change upon Finance review and final approval of expenditures submitted for reimbursement by Departments. Going forward, the City does not expect any additional outside source of funds for COVID related activity.
Table 2
Date Source of Fund for Expenditures Amount
CARES Funding $ (380,219)
Bureau of Justice (BOJ) Funding (32,660)
San Mateo County Funding (Curative I) (17,754)
San Mateo County Funding (Curative II) (29,151)
San Mateo County Funding (Vaccination) (47,293)
San Mateo County Funding (Vacc & Testing) (124,377)
San Mateo County Funding (Incentive Support) (15,000)
FEMA (72,725)
City Funds (924,050)
Total (1,643,228)
09/30/22
It is important to note that all outside funding has strict regulatory eligibility and reporting requirements. Staff is making best efforts to maximize the City’s overall funding reimbursements; however, we recognize certain funding requests may not result in approved reimbursements. In such a case, those costs will need General Fund resources.
Finance is also applying discretion over certain charges whereby the estimated cost of administrative cost of tracking, supporting, and applying for federal reimbursement is greater than the actual cost receipt.
Below is a detailed analysis of the City’s COVID-19 response activity. Costs shown in Table 3 do not reflect the significant additional workload and all the diversion in the Police Department, City Manager’s Office, City Attorney’s Office, City Clerk, Finance and Human Resources.
Table 3
Description Spent
Committed
to Contract Total
City Council
Direct
Authority
City Manager
Emergency
Authority
Vaccine Incentive Cards 45,243 9,757 55,000 55,000 -
COVID-Testing, Vaccine 589,960 20,000 609,960 280,212 329,748 Traffic Support 186,353 - 186,353 4,467 181,886
Police Response Mitigation 241,188 - 241,188 241,188 -
Remote Dance Classes 12,500 - 12,500 - 12,500
Distance Learning 19,905 40,095 60,000 60,000 -
Tenant Rental Assistance 100,000 - 100,000 100,000 -
Small Business Assistance 27,000 - 27,000 - 27,000
Safety Measures 133,882 - 133,882 60,777 73,105
Homeless "At Risk" Mitigation 78,884 38,647 117,531 96,731 20,800 Employee Remote Work 67,470 - 67,470 20,520 46,950
Employee Leave 74,070 - 74,070 56,090 17,980
COVID Staffing Support 12,900 12,100 25,000 - 25,000
Outreach and Communication 53,873 3,000 56,873 23,000 33,873 1,643,228 123,599 1,766,827 997,985 768,842
All new expenses are in the COVID-Testing, Vaccine and Vaccine Incentive Card categories.
There is also a new commitment to contract, which is the new contract with YCS to administer our Pandemic Aide program ($20,000).
Fiscal Impact
Of the total City and outside source funding authorized of $2.06M, approximately $1.77M is spent and committed. All anticipated additional COVID related expenditures are expected to be funded through the budgeted Vaccination Incentive or Pandemic Aide Programs. For unanticipated costs, the remaining $0.21M emergency authority provides the City Manager with sufficient flexibility. Therefore, staff are not seeking additional emergency funding authority through December 31, 2022.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo Co. Library located at 2415 University Avenue, East Palo Alto.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.